$450K real estate scheme involved B.C. pastor and son: regulator

British Columbia Securities Commission (BCSC) has found that two Surrey residents – a pastor and his son – and a White Rock resident committed fraud against two people in a real estate related investment scheme.

A BCSC panel found that Alan and Jerry Braun, and Steven Maxwell (also known as Steven Fassman), committed fraud when they took $450,000 from two investors in three different transactions.

“In each case, the prohibited act or deception clearly resulted in the risk of deprivation and, ultimately, actual deprivation to the investors,” the panel said in its findings.

The panel found that Braun Developments and 8022275 Canada Inc. committed fraud with respect to the three investments in the amount of $450,000, and TerraCorp Investment committed fraud with respect to two of the investments in the amount of $300,000.

According to BCSC, Alan and Jerry Braun, both directors and officers of Braun Developments and TerraCorp Investment, were responsible for directing the affairs of both entities. Maxwell was a director of 8022275 Canada Inc. and was responsible for its affairs, the BCSC stated.

“The three men and the companies that they controlled deceived the investors by leading them to believe that they were purchasing real estate investments in Edmonton that would yield very high returns in a short period,” noted the release from BCSC. “In the end, the Brauns and Maxwell did not use the investors’ money to invest in real estate. Instead, they used the investors’ money for other purposes, including for their own personal living expenses.”

The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.